ajinomoto co., inc....supplementary results materials will be published on the company’s website...

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Ajinomoto Co., Inc.

Consolidated Results

IFRS

First Half Ended September 30, 2020

This document has been translated from the original Japanese as a guide for non-Japanese investors. It contains forward-looking statements based on a number of assumptions and judgements made by management in light of information currently available. Actual financial results may differ depending on a number of factors, including changing economic conditions, legislative and regulatory developments, delay in new product launches, and pricing and product initiatives of competitors.

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SUMMARY OF FINANCIAL STATEMENTS [IFRS] (Consolidated)

First half results for the fiscal year ending March 31, 2021

Ajinomoto Co., Inc. November 4, 2020 Stock Code: 2802 Stock exchange listing: Tokyo Stock Exchange URL: https://www.ajinomoto.co.jp/company/ President: Takaaki Nishii For inquiries: Eiichi Mizutani Telephone: +81-3-5250-8111 General Manager Global Finance Department

Scheduled date of submission of statutory quarterly financial report: November 10, 2020

Scheduled date of payment of dividend: December 4, 2020

Creation of supplementary results materials for quarterly financial report: Yes

Quarterly results briefing: Yes (for analysts)

“Change %” indicates the percentage change compared to the same period of the previous fiscal year.

Note 1: Upon the adoption of IFRS, the Ajinomoto Group has introduced “business profit” as a new profit level that will better enable

investors, the Board of Directors, and the Management Committee to grasp the core business results and future outlook of each

business while also facilitating continuous evaluation of the Group’s business portfolio by the Board of Directors and the

Management Committee. “Business profit” is defined as sales minus the cost of sales, selling expenses, research and development

expenses, and general and administrative expenses, to which is then added share of profit of associates and joint ventures.

Business profit does not include other operating income or other operating expenses. Note 2: In the fiscal year ended March 31, 2020, the Ajinomoto Group was classified the packaging business under discontinued

operations. Together with the logistics business, which had been previously classified under discontinued operations, profit from discontinued operations in the condensed quarterly consolidated statements is presented separately from the profit from continuing operations, and sales, business profit, and profit before income taxes are amounts related to continuing operations. Amounts shown for the corresponding period of the fiscal year ended March 31, 2020 have been adjusted to reflect this change; accordingly, the percent change from the previous year’s results is not shown.

Note 3: In the previous fiscal year, the Company finalized a provisional accounting treatment related to a business combination. The figures for the first half ended September 30, 2019 have been adjusted to reflect the finalization of the provisional accounting treatment.

(2) Consolidated Financial Position

Millions of yen, rounded down

As of September 30, 2020

As of March 31, 2020

Total assets ..................................................................... 1,331,220 1,353,616 Total equity ...................................................................... 608,698 592,070 Equity attributable to owners of the parent company ....... 565,099 538,975 Ownership ratio attributable to owners of the parent company (%) .................................................................... 42.4% 39.8%

1. Consolidated Financial Results for the First Half Ended September 30, 2020

(1) Consolidated Operating Results


First half ended September 30, 2020

First half ended September 30, 2019

Change % Change % Sales ............................................................................. 511,382 (3.9) 532,266 — Business profit .............................................................. 61,940 30.0 47,654 — Profit before income taxes ............................................ 59,954 185.6 20,992 — Profit ............................................................................. 41,106 234.4 12,294 — Profit attributable to owners of the parent company ...... 36,661 420.1 7,049 — Basic earnings per share (yen) ....................................... ¥66.87 — ¥12.86 — Diluted earnings per share (yen) .................................... ¥66.84 — — —

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Note: Revisions to dividend forecasts in the period under review: None

“Change %” indicates the percentage change compared to the previous fiscal year. Notes: Revisions to forecasts in the period under review: Yes Please refer to Notice of Revisions to Full-Year Consolidated Performance Forecast for the Fiscal Year Ending March 31, 2021 released today (November 4, 2020) for more details about the revision of the consolidated results forecast.

2. Dividends


Fiscal year ended

March 31, 2020

Fiscal year ending

March 31, 2021

Fiscal year ending

March 31, 2021

(forecast)

Dividend per share

Interim (yen) ....................................................... ¥16.00 ¥16.00

Year-end (yen) .................................................... ¥16.00 ¥16.00

Annual (yen) ....................................................... ¥32.00 ¥32.00

3. Forecast for the Fiscal Year Ending March 31, 2021


Fiscal year ending March 31, 2021

Change %

Sales ................................................................................. 1,066,000 (3.1)

Business profit .................................................................. 100,000 0.8

Profit attributable to owners of the parent company .......... 36,000 91.1

Basic earnings per share (yen) ......................................... 65.65 —

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Notes:

(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries resulting in the change

in consolidation scope): None

(2) Changes in accounting policies and accounting estimates

1) Changes in accounting policies as required by IFRS: Yes

2) Other changes in accounting policies: None

3) Changes in accounting estimates: None

(3) Number of shares outstanding (ordinary shares)

Shares

As of September 30, 2020 As of March 31, 2020

Number of shares outstanding at end of period (including treasury shares):

549,163,354 549,163,354

Number of treasury shares at end of period 817,311 974,103

April 1, 2020 to September 30, 2020 April 1, 2019 to September 30, 2019

Average number of shares during period 548,211,212 548,106,993

(Note) The number of treasury shares at the end of the period includes the Company’s shares held by “Director’s

remuneration BIP Trust” (As of September 30, 2020: 715,500 shares. As of March 31, 2020: 873,700 shares),

which has been adopted along with the introduction of Stock-based Remuneration of Executive Officers Based on

the Company’s Medium-term Earnings Performance for the Directors and others. In addition, these Company’s

shares are included in the treasury shares which are deducted from the number of shares when calculating the

average number of shares during the period.

Summary quarterly financial statements are exempted from review by a public certified accountant or an auditing firm.

Appropriate use of forecasts and other notes

Disclaimer regarding forward-looking statements and other information

Forward-looking statements, such as business forecasts, included in this document are based on management’s

estimates, assumptions, and projections at the time of publication. These statements do not represent a promise or

commitment by the Company to achieve these forecasts. Actual operating results may differ significantly due to

various factors. For more information regarding our earnings forecasts, see page 6, “1. Qualitative Information on

First Half Consolidated Results, (1) Overview of Operating Results.”

Method of obtaining supplementary results materials

Supplementary results materials will be published on the Company’s website on Wednesday, November 4, 2020.

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Table of contents

1 Qualitative Information on First Half Consolidated Results ............................................................................... 6

(1) Overview of Operating Results ................................................................................................................. 6

(2) Overview of Financial Position .................................................................................................................. 10

2 Condensed Consolidated Financial Statements and Notes .............................................................................. 11

(1) Condensed Consolidated Statements of Financial Position ..................................................................... 11

(2) Condensed Consolidated Statements of Income ..................................................................................... 13

First Half ................................................................................................................................................. 13

(3) Notes to Condensed Consolidated Financial Statements ........................................................................ 14

Going Concern Assumption ...................................................................................................................... 14

Significant Accounting Policies ................................................................................................................. 14

Segment Information ................................................................................................................................. 14

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1. Qualitative Information on First Half Consolidated Results

Upon the adoption of IFRS, the Ajinomoto Group introduced "business profit” as a new profit level that will

better enable investors, the Board of Directors, and the Management Committee to grasp the core business

results and future outlook of each business while also facilitating continuous evaluation of the Group’s

business portfolio by the Board of Directors and the Management Committee. “Business profit” is defined as

sales minus the cost of sales, selling expenses, research and development expenses, and general and

administrative expenses, to which is then added share of profit of associates and joint ventures. Business

profit does not include other operating income or other operating expenses.

On February 5, 2020, the Ajinomoto Group entered into a contract to transfer the entire equity stake held

by the Group corresponding to 51% of the outstanding shares in Fuji Ace Co., Ltd., a packaging materials

manufacturing and sales company in Thailand, to Fuji Seal International, Inc. and other entities, and

transferred the equity stake on March 6, 2020.

Accordingly, profit related to the packaging business in the first half of the fiscal year ended March 31,

2020 has been restated as profit from discontinued operations, and the discontinued operations have been

presented separately from continuing operations.

In the previous fiscal year, the Company finalized a provisional accounting treatment related to a business

combination. Accordingly, a significant revision has been made in the initial allocation of acquisition costs for

the first half ended September 30, 2019.

(1) Overview of Operating Results

In the first half, ended September 30, 2020, the Company’s consolidated sales fell 3.9% year-on-year, or

¥20.8 billion, to ¥511.3 billion. This was because there was a continued decline in sales in conjunction with the

COVID-19 global pandemic, mainly in Seasonings and Foods and Frozen Foods, even though a trend of

recovery can be seen in demand for products for use in foodservice while sales of home-use products

increased due to the expansion in at-home dining demand. Business profit increased 30% year-on-year, or

¥14.2 billion to ¥61.9 billion, owing to the effect of increased sales of home-use products and lower expenses

due to a reduction in marketing and associated activities in Seasonings and Foods and Frozen Foods during

the lockdown and stay-at-home periods, and a large increase in profit for animal nutrition products in addition

to other factors including the effect of recording impairment loss related to the trademark rights of Promasidor

Holdings Limited (“PH”) in the same period of the previous year. Profit attributable to owners of the parent

company totaled ¥36.6 billion, up 420.1% year-on-year, or ¥29.6 billion. The reasons for the increase were

mainly the effect of recording impairment losses on investments accounted for using the equity method

related to PH, and on production equipment in the animal nutrition business and the bakery business in the

same period of the previous year.

Furthermore, the Company has revised the financial results forecast announced on July 30, 2020 based

on recent progress in business performance in the first half of this fiscal year.

The Company has increased the forecast for sales by ¥9.0 billion from the previous forecast to ¥1,066.0

billion. This is largely because in Seasonings and Foods and Frozen Foods accompanying the COVID-19

global pandemic, sales of home-use products are expected to exceed the previous forecast due to the

increase in at-home dining demand, although sales of products for use in foodservice are expected to remain

lower than in the previous year despite a trend of recovery, and the revision of the forecast is the result of

reviewing the impact of these factors in the current environment. The percentage of progress of sales against

the revised forecast is 48.0%. Business profit is expected to exceed the previous forecast, mainly due to sales

growth, improved profitability, and reductions in expenses for electronic materials and amino acids for

pharmaceuticals and foods in the Healthcare and Others segment in addition to sales growth of seasonings

and frozen foods, improved profitability due to the product mix and other factors, and reductions in expenses

in the Seasonings and Foods and Frozen Foods segments. As a result, the Company has increased the

forecast for business profit by ¥10.0 billion from the previous forecast to ¥100.0 billion. The percentage of

progress of business profit against the revised forecast is 61.9%. The Company has also increased the

forecast for profit attributable to owners of the parent company by ¥4.0 billion from the previous forecast to

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¥36.0 billion given the revision of business profit. The percentage of progress of profit attributable to owners of

the parent company against the revised forecast is 101.8%.

Please also refer to Notice of Revision to Full-Year Consolidated Performance Forecast for the Fiscal Year

Ending March 31, 2021 released today (November 4, 2020) for more details about the revision of the

consolidated results forecasts.

Consolidated operating results by segment

Results for individual business segments are summarized below.

Billions of yen, rounded down

YoY Sales YoY change

- amount YoY change

- percent Business

profit YoY change

- amount YoY change

- percent

Seasonings and

Foods 295.3 (12.9) (4.2) % 47.0 8.3 21.7 %

Frozen Foods 98.8 (4.4) (4.3) % 2.6 1.3 96.0 %

Healthcare and

Others 110.6 (2.9) (2.6) % 11.9 4.7 67.1 %

Other 6.5 (0.5) (7.7) % 0.2 (0.2) (47.3) %

Total 511.3 (20.8) (3.9) % 61.9 14.2 30.0 %

Billions of yen, rounded down

Sales Business profit

Vs. the forecast FY2020 first half

Forecast for the year

Achieved - percent

FY2020 first half

Forecast for the year

Achieved - percent

Seasonings and

Foods 295.3 615.3 48.0 % 47.0 76.3 61.7 %

Frozen Foods 98.8 205.0 48.2 % 2.6 0.5 466.3 %

Healthcare and

Others 110.6 229.6 48.2 % 11.9 22.2 53.8 %

Other 6.5 15.9 41.0 % 0.2 0.8 27.7 %

Total 511.3 1,066.0 48.0 % 61.9 100.0 61.9 %

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1) Seasonings and Foods

In the Seasonings and Foods segment, sales fell 4.2% year-on-year, or ¥12.9 billion, to ¥295.3 billion, largely

because of lower sales of products for foodservice owing to lower demand for foodservice products, despite

increased sales of home-use products due to higher at-home dining demand. Segment business profit

increased 21.7% year-on-year, or ¥8.3 billion, to ¥47.0 billion, owing to the effect of increased sales of home-

use products and lower marketing expenses in addition to the recording of impairment loss related to

trademark rights of PH and other factors in the same period of the previous year.

Main factors affecting segment sales

Sauce & Seasonings: Decrease in revenue due to the impacts of

currency translation and decreased sales of foodservice-use products

overseas from decreased demand, despite increased sales in home-

use products accompanying increased at-home demand.

In Japan, revenue increased due to strong sales of home-use

products.

Overseas, revenue decreased due to the impacts of currency

translation and decreased sales for foodservice-use products, despite

increased revenue of menu-specific seasonings.

Quick Nourishment: Decrease in revenue due to decreased sales of

overseas products and restaurant and industrial-use coffee products,

despite higher year-on-year sales in Japan of home-use products due

to increased at-home demand.

In Japan, revenue decreased due to decreased sales of restaurant and industrial-use coffee products,

despite higher year-on-year sales in home-use coffee products and soup.

Overseas, revenue decreased due to the impacts of currency translation and decreased sales of

instant noodles and beverages.

Solution & Ingredients: Decrease in revenue due to decreased sales of foodservice-use products in

Japan from decreased demand and decreased revenue from umami seasonings for processed food

manufacturers.

Main factors affecting segment profits

Sauce & Seasonings: Large increase in profit due to the effect of

increased revenue from home-use products and decreased marketing

expenses.

In Japan, large increase in profit due to the effect of increased

revenue and decreased marketing expenses.

Overseas, large increase in profit due to decreased marketing

expenses and the effect of improvement in the product mix, despite

the impact of currency translation.

Quick Nourishment: Large increase in profit due to a previous-year

impairment loss on trademark rights of Promasidor Holdings

(hereinafter, PH) and the effect of increased revenue from home-use

products in Japan.

In Japan, a large increase in profit due to the effect of increased revenue from major home-use coffee

products and decreased marketing expenses.

Overseas, a large increase in profit due to the previous-year impairment loss on trademark rights of

PH, despite the effect of decreased revenue.

Solution & Ingredients: Large decrease in profit due to the effect of decreased revenue from

foodservice-use products in Japan and umami seasonings for processed food manufacturers.

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2) Frozen Foods

Frozen Foods segment sales fell 4.3% year-on-year, or ¥4.4 billion, to ¥98.8 billion, as the result of a

decline in sales of restaurant-use products due to lower foodservice demand despite increased sales of

home-use products due to higher home cooking demand. Segment business profit had a significant

increase of 96.0% year-on-year or ¥1.3 billion, to ¥2.6 billion, mainly owing to the effect of increased sales

of home-use products and lower marketing expenses.


Decrease in revenue due to decreased sales of restaurant-use

products because of decreased demand for foodservices, despite

increased sales of home-use accompanying increased at-home

demand.

In Japan, revenue decreased due to decreased sales of restaurant-

use products, despite increased sales of major home-use products,

primarily Gyoza.

Overseas, despite North American sales basically level with the

previous year on a local currency base, overall revenue decreased

due to the impacts of currency translation and decreased sales of

restaurant-use products.


Large increase in profit due to the effect of increased revenue from

home-use products and decreased marketing expenses.

In Japan, a large increase in profit due to the effect of increased

revenue from major home-use products and decreased marketing

expenses.

Overseas, increased profit due to the effect of increased revenue from

home-use products and decreased marketing expenses.

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3) Healthcare and Others

Healthcare and Others segment sales decreased 2.6% year-on-year, or ¥2.9 billion, to ¥110.6 billion, owing

to a large decrease in animal nutrition and sports nutrition sales despite a significant increase in sales of

specialty chemicals. Segment business profit increased 67.1% year-on-year, or ¥4.7 billion, to ¥11.9 billion

accompanying large increases in profit for animal nutrition products and specialty chemicals.


Amino Acids: Decrease in revenue due to the timing of shipments in

Bio-Pharma Services.

Specialty chemicals: Large increase in revenue primarily due to strong

sales of electronic materials.

Others: Decrease in revenue due to a decrease in sales volume of

animal nutrition and a decrease in demand for sports nutrition

products.


Amino Acids: Decreased profit due to the effects of the Bio-Pharma

Services product mix.

Specialty chemicals: Large increase in profit accompanying large

increase in revenue.

Others: Large increase in profit due to increased unit sales prices in

animal nutrition.

4) Other

In the Other segment, sales totaled ¥6.5 billion, down 7.7% year-on-year, or ¥0.5 billion. Segment

business profit totaled ¥0.2 billion, a decrease of 47.3% year-on-year, or ¥0.2 billion.

(2) Overview of Financial Position

As of September 30, 2020, the Company’s consolidated total assets stood at ¥1,331.2 billion, a decrease of

¥22.3 billion from ¥1,353.6 billion at the end of the previous fiscal year on March 31, 2020. The main reason

for this decrease is a decrease in trade and other receivables.

Total liabilities came to ¥722.5 billion, ¥39.0 billion less than the ¥761.5 billion at the end of the previous

fiscal year, mainly due to a decrease in trade and other payables. Interest-bearing debt totaled ¥419.6 billion,

an increase of ¥5.9 billion from the end of the previous fiscal year, mainly due to an increase in short-term

borrowings although commercial papers and current portion of bonds decreased.

Total equity as of September 30, 2020 was ¥16.6 billion more than at the end of the previous fiscal year,

mainly reflecting an increase in retained earnings. Equity attributable to owners of the parent company, which

is total equity minus noncontrolling interests, totaled ¥565.0 billion, and the equity ratio attributable to owners

of the parent company was 42.4%.

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2. Condensed Consolidated Financial Statements and Notes

(1) Condensed Consolidated Statements of Financial Position

Millions of yen

As of end of first half

(September 30, 2020)

As of end of previous fiscal

year (March 31, 2020)

Assets

Current assets

Cash and cash equivalents 141,857 141,701

Trade and other receivables 160,197 184,739

Other financial assets 10,506 8,946

Inventories 193,169 178,636

Income taxes receivable 3,584 8,653

Others 16,635 16,225

Sub total 525,951 538,901

Assets of disposal groups classified as held for sale — —

Total current assets 525,951 538,901

Non-current assets

Property, plant and equipment 459,908 454,357

Intangible assets 69,261 69,245

Goodwill 89,983 89,964

Investments in associates and joint ventures 111,417 116,280

Long-term financial assets 51,453 50,132

Deferred tax assets 11,994 17,781

Others 11,250 16,952

Total non-current assets 805,269 814,714

Total assets 1,331,220 1,353,616

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Millions of yen

As of end of first half

(September 30, 2020) As of end of previous fiscal

year (March 31, 2020)

Liabilities

Current liabilities

Trade and other payables 156,752 178,583

Short-term borrowings 48,082 8,043

Commercial papers 4,000 40,000

Current portion of bonds — 19,995

Current portion of long-term borrowings 14,645 15,191

Other financial liabilities 6,740 5,401

Short-term employee benefits 36,588 41,588

Provisions 3,206 5,272

Income taxes payable 9,506 12,517

Others 8,892 8,972

Sub total 288,415 335,566

Liabilities of disposal groups classified as held

for sale — —

Total current liabilities 288,415 335,566

Non-current liabilities

Corporate bonds 149,579 149,550

Long-term borrowings 147,342 124,135

Other financial liabilities 70,503 72,738

Long-term employee benefits 55,702 66,659

Provisions 5,489 7,264

Deferred tax liabilities 4,383 4,503

Others 1,105 1,127

Total non-current liabilities 434,105 425,978

Total liabilities 722,521 761,545

Equity

Common stock 79,863 79,863

Capital surplus (7,271) —

Treasury stock (1,809) (2,160)

Retained earnings 602,229 574,287

Other components of equity (107,912) (113,015)

Disposal groups classified as held for sale — —

Equity attributable to owners of the parent

company 565,099 538,975

Non-controlling interests 43,598 53,095

Total equity 608,698 592,070

Total liabilities and equity 1,331,220 1,353,616

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(2) Condensed Consolidated Statements of Income

Millions of yen

First half (April 1, 2020 to

September 30, 2020)

First half (April 1, 2019 to

September 30, 2019)

Continuing operations

Sales 511,382 532,266

Cost of sales (315,213) (337,451)

Gross profit 196,168 194,814

Share of profit of associates and joint ventures 1,786 (1,808)

Selling expenses (71,220) (82,731)

Research and development expenses (12,337) (13,882)

General and administrative expenses (52,456) (48,737)

Business profit 61,940 47,654

Other operating income 6,134 2,721

Other operating expenses (6,772) (29,616)

Operating profit 61,302 20,759

Financial income 1,585 3,628

Financial expenses (2,933) (3,395)

Profit before income taxes 59,954 20,992

Income taxes (18,848) (8,503)

Profit from continuing operations 41,106 12,489

Profit (loss) from discontinued operations — (195)

Profit 41,106 12,294

Profit Attributable to:

Owners of the parent company 36,661 7,049

Non-controlling interests 4,445 5,244

Profit from continuing operations attributable to owners of the

parent company

36,661 7,409

Profit from discontinued operations attributable to owners of the

parent company

— (359)

Profit attributable to owners of the parent company 36,661 7,049

Earnings per share from continuing operations (yen):

Basic 66.87 13.52

Diluted 66.84 —

Earnings per share from discontinued operations (yen):

Basic — (0.66)

Diluted — —

Earnings per share (yen):

Basic 66.87 12.86

Diluted 66.84 —

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(3) Notes to Condensed Consolidated Financial Statements

Going Concern Assumption

Not applicable

Significant Accounting Policies

With the exception of the items explained below, the significant accounting policies used to prepare these

condensed consolidated financial statements for the first half are unchanged from the policies applied to the

consolidated financial statements in the previous fiscal year.

Income taxes for this first half are calculated based on an estimation of the effective tax rate for the fiscal year.

Impact of Applying New Accounting Policies

The Group has applied the following accounting standards from the first quarter of this fiscal year.

IFRS Overview of new standards or amendments

IFRS 7 Financial Instruments: Disclosures Partial amendment of hedge accounting

requirements in response to IBOR reform IFRS 9 Financial Instruments

At the present stage, there is no impact due to applying the above accounting standards.

Segment Information

1) Overview of reportable segments

The Group’s reportable segments are categorized primarily by product lines. From the first quarter of this fiscal year,

the Group has reclassified its previous four reportable segments of Japan Food Products, International Food

Products, Life Support, and Other into three reportable segments: Seasonings and Foods, Frozen Foods, and

Healthcare and Others. This reclassification accompanies changes in corporate organization aimed at strengthening

business-based global management systems for the core businesses in the Medium-Term Management Plan.

Each reportable segment is a component of the Group for which separate financial information is available and

evaluated regularly by the Management Committee in determining the allocation of management resources and in

assessing performance.

Segment information for the first half of the fiscal year ended March 31, 2020 discloses information prepared

based on the reportable segment classifications after the changes in corporate organization.

In addition, in the fiscal year ended March 31, 2020, the packaging business was classified under discontinued

operations, and segment information presents amounts related to continuing operations only, excluding the packaging

business.

In the previous fiscal year, the Company finalized a provisional accounting treatment related to a business

combination. Accordingly, a significant revision has been made in the initial allocation of acquisition costs for the first

half, ended September 30, 2019.

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The product categories belonging to each reportable segment are as follows:

Reportable

Segments Details Main Products

Seasonings

and Foods

Sauce and

Seasonings

Umami seasonings AJI-NO-MOTO®, HON-DASHI®, Cook Do®,

Ajinomoto KK Consommé, Pure Select® Mayonnaise,

Ros Dee® (flavor seasoning/Thailand), Masako® (flavor

seasoning/Indonesia), Aji-ngon® (flavor seasoning/Vietnam),

Sazón® (flavor seasoning/Brazil),

Sajiku (menu-specific seasoning/Indonesia), CRISPY FRY (menu-

specific seasoning/Philippines), etc.

Quick Nourishment Knorr® Cup Soup, YumYum® (instant noodles/Thailand), Birdy®

(coffee beverage/Thailand), Birdy® 3in1 (powdered drink/Thailand),

Blendy® brand products (CAFÉ LATORY®, stick coffee, etc.),

MAXIM® brand products, Chyotto Zeitakuna Kohiten® brand

products, various gift sets, office supplies (coffee vending

machines, tea servers), etc.

Solution and

Ingredients

Umami seasoning AJI-NO-MOTO® for foodservice and processed

food manufacturers in Japan,

Seasonings and processed foods for foodservice,

Seasonings for processed foods (savory seasonings, enzyme

ACTIVA®),

Drinks supplied to restaurants, Ingredients for industrial use,

Delicatessen products, Bakery products, Nucleotides,

Sweeteners (aspartame for food processing, PAL SWEET® for

home use, etc.), and others

Frozen Foods Frozen Foods Chinese dumplings (Gyoza, Shoga Gyoza, POT STICKERS, etc.), Cooked rice (THE CHA-HAN, CHICKEN FRIED RICE, YAKITORI CHICKEN FRIED RICE, etc.), Noodles (YAKISOBA, RAMEN, etc.), Desserts (cakes for restaurant and industrial-use, MACARON, etc.), Shumai (THE SHUMAI, etc.), Processed chicken (Yawaraka Wakadori Kara-Age (fried chicken), etc.), and others

Healthcare and

Others

Amino Acids for

Pharmaceuticals and

Foods

Amino acids, culture media, medical foods

Bio-Pharma Services Contract manufacturing services of pharmaceutical intermediates

and active ingredients, sterile products (fill and finish), etc.

Specialty Chemicals Electronic materials (Ajinomoto Build-up Film® (ABF) interlayer

insulating material for semiconductor packages and others),

Functional materials (adhesive PLENSET®),

Magnetic materials (AFTINNOVA® Magnetic Film and others),

activated carbon, release paper, etc.

Others Feed-use amino acids (Lysine, Threonine, Tryptophan, Valine,

AjiPro®-L, etc.),

Fundamental Foods (Glyna®, Amino Aile®),

Functional foods and drinks (amino VITAL®),

Personal Care ingredients (amino acid-based mild surfactant

Amisoft®, Amilite®, amino acid-based humectant Ajidew®, etc.)

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2) Information by reportable segment

The Group’s sales and earnings by reportable segments are as follows:

Inter-segment sales and transfers are primarily based on transaction prices between third-parties.

1. Other includes the tie-up and other service-related businesses.

2. Common corporate expenses that are not attributed to specific reportable segments are allocated to each

reportable segment based on reasonable criteria. Common corporate expenses mainly relate to the parent

company’s administrative divisions.

First half ended September 30, 2020 (April 1, 2020 to September 30, 2020)

Millions of yen

Reportable segment

Other1 Total Adjust-

ments2

As included

in

condensed

consolidated

financial

statements

Seasonings

and Foods Frozen Foods

Healthcare and

Others

Sales

Sales to third parties 295,386 98,832 110,623 6,539 511,382 — 511,382

Inter-segment sales

and transfers 2,971 726 2,711 18,489 24,897 (24,897) —

Total sales 298,357 99,558 113,335 25,028 536,280 (24,897) 511,382

Share of profit of

associates and joint

ventures

989 — 67 730 1,786 — 1,786

Segment profit or loss

(Business profit or

loss)

47,094 2,656 11,950 239 61,940 — 61,940

Other operating income 6,134

Other operating expense (6,772)

Operating profit 61,302

Financial income 1,585

Financial expense (2,933)

Profit before income taxes 59,954

17

1. Other includes the tie-up and other service-related businesses.

2. Common corporate expenses that are not attributed to specific reportable segments are allocated to each

reportable segment based on reasonable criteria. Common corporate expenses mainly relate to the parent

company’s administrative divisions.

First half ended September 30, 2019 (April 1, 2019 to September 30, 2019)

Millions of yen

Reportable segment

Other1 Total Adjust-

ments2

As included

in

condensed

consolidated

financial

statements

Seasonings

and Foods Frozen Foods

Healthcare and

Others

Sales

Sales to third parties 308,348 103,258 113,575 7,084 532,266 — 532,266

Inter-segment sales

and transfers 2,768 724 2,035 16,166 21,694 (21,694) —

Total sales 311,116 103,982 115,610 23,251 553,960 (21,694) 532,266

Share of profit of

associates and joint

ventures

(3,069) — 141 1,119 (1,808) — (1,808)

Segment profit or loss

(Business profit or

loss)

38,694 1,355 7,150 454 47,654 — 47,654

Other operating income 2,721

Other operating expense (29,616)

Operating profit 20,759

Financial income 3,628

Financial expense (3,395)

Profit before income taxes 20,992

ajinomoto co., inc....supplementary results materials will be published on the company’s website...

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